Shifts in Employer Approaches to Retirement Income Highlighted by T. Rowe Price Study

New Research Indicates Increased Focus on Financial Wellness and Investment Options

The latest T. Rowe Price study highlights a significant change in how employers and advisors are considering retirement income plans. Compared to previous years, more plan sponsors are now actively forming their opinions on retirement income, showing a greater engagement with this critical topic.

Interest is growing in managed accounts that include income planning features, along with target-date investments that provide managed payouts or integrated annuities. Notably, collective investment trusts (CITs) have become more popular than mutual funds as preferred target-date options, largely due to their lower costs and greater flexibility.

Moreover, the study reveals that employers are increasingly interested in financial wellness programs. These can include tools like emergency savings accounts aimed at improving employee satisfaction and retention. While moderately backing ESG integration, the study points out that regulatory hurdles and implementation challenges hinder more widespread acceptance.

Finsum: This research emphasizes the crucial role of advisors in shaping defined contribution strategies and suggests they can influence client perspectives effectively.

• defined contribution
• 401k
• managed accounts

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.